If you’re looking for ways to save money on your medical expenses or health care provider, then get a health savings account. I read that Americans spend over $30 billion each year on complementary and alternative therapies, mostly out of their own pocket. That is because few health insurance plans cover expenses like homeopathy, acupuncture, or Chinese medicine. But if you own a health savings account, these expenses are 100% tax deductible.
A health savings account is a tax-free savings account similar to an individual retirement account. It is designed for the specific purpose of paying for unforeseen medical expenses. These expenses are completely tax deductible if you are self-employed, and there are even deductions for those who are not. Cash from these accounts can be withdrawn by using a check or debit card. This new development gives individuals the ability to help pay for routine medical expenditures, or emergency medical bills, with money that is tax free.
The amount that is not used to pay bills will accumulate and continue to collect interest in the savings account. This amount keeps growing in the account, year after year. If you are fortunate enough to live a long and healthy life, then the account can actually be used as a supplement to social security after retirement.
Sounds great isn’t it? Then why not study this option, it could be a great help to reduce your daily expenses.